How Much Do Your Kids Know About Money?

After school on Friday, I asked my 11-year-old if he wanted to help me straighten the house a bit. Our boys get an allowance for going above and beyond their regular duties (keeping their bedroom neat, cleaning up after themselves, picking up toys, etc.) so since sweeping up all the crumbs under the table wasn’t in his list of regular duties, I offered to pay him. I said I would give him a quarter for sweeping the kitchen floor (mainly the crumbs under the table), another quarter for carrying the folded laundry upstairs, and another for putting his sister’s toys strewn about the living room into the toy basket. Each chore took him about 2 minutes, but I still thought that it was a good deal for me. I looked around and was amazed at how clean the house looked after he finished. For $0.75, I had a straightened main floor–not bad! He noticed this as well, and immediately asked for a raise.

Really? You’re going to ask for a raise your first day on the job?”“Mom! You gave me $0.75 and look how much work I did!”
“Okay, let’s talk about how much work you did. How long did it take you to sweep up the crumbs? 2 minutes?”“Yeah, about.”
“Great. How long did it take you to put the laundry upstairs and pick up the toys? Another 2 minutes each?”“Something like that. Why?”
“Well, you just made better than minimum wage.”“How do you figure?”
“Well, you worked for approximately 6 minutes and made $0.75, right? That’s $7.50/hour for entry-level work. For an 11-year-old who can’t legally get a real job, I think you did pretty well and shouldn’t complain.”

Our conversation made me wonder how much my kids really know about money. I decided to interrogate them (the 11 and 7-year-old, not the baby…) after dinner, record their answers, and then post for the world to see. I chose to not give them any feedback on their responses until the end. The hardest part was recording their answers without making any faces or explaining what we know about each. Laughing at your own children is totally wrong, but laughing at someone else’s children is perfectly acceptable, so feel free to enjoy their responses.

ON SALARY

Mom: How much money does the President make each year?
Eleven: $400,000
Seven: At Least a million! He has a really hard job.

Mom: How much does your teacher make?
Eleven: A lot less than she should be paid.
Seven: I don’t know. Maybe $50 a day?

Mom: How much does your dad make each year?
Eleven: $250,000
Seven: $200,000(I wish.)

Mom: What do you think is the average salary for a household in America?
Eleven: $150,000
Seven: $500,000

Mom to Seven: So, you think we make a lot less than average?
Seven: Obviously!

Mom: How would you describe our financial situation?
Eleven: We’re middle-class.
Seven: I think we’re doing really bad, because you can’t afford to buy the things you want.

Mom: How much would we need to make each year to be considered rich?
Eleven: $500,000
Seven: $900,000(wowza…)

ON COST OF LIVING

Mom: How much does it cost for a family of four to eat out at a restaurant? (I used Applebees as the example.)
Eleven: $32
Seven: $48(I was happy to see that both responses were divisable by 4!)

Mom: How much should a man spend on an engagement ring?
Eleven: It depends how rich you are. Anywhere from $300-$1000.
Seven: $50. Definitely not any more! (He then looked at Eleven like he had 4 heads.)

Mom: How much did it cost for us to have your sister, including hospital and doctor bills?
Eleven: $200,000
Seven: $100,000

(Surprised by their high estimates, I asked a follow-up question.)
Mom: That’s a lot of money. Do you think she’s worth it?
Eleven: MOM! Of course she is!
Seven: Yes, definitely! She’s a pretty good baby.

Mom: So, should we have another baby?
Eleven and Seven in unison: NO!
Seven: Unless it’s a boy. Then, he can share my room.

Mom: What part of the country has the most expensive housing?
Eleven: California!
Seven: Florida!

Mom: Why do you think that is?
Seven: I think Florida is the most expensive because it’s warm and they have nice beaches.
Eleven: Three words. Location, location, location. Also, they have really pretty girls.(Eye roll…)

At the end of the interview, I used their responses to fuel a motivational speech about how they each better start studying now, because kids who don’t do well in school don’t usually grow up to live on the beach making at least half a million dollars a year.

“Location, location, location” lol. Love it. Seems your 11 year old is already getting the message!
You’ll have to save these little interviews and show the kids when they’re adults. I’m sure they’d get a kick out of it.

Thanks, Dave! They actually answered a few other questions that I didn’t post, and I was surprised at how close their answers were to reality. They both knew how much milk and eggs cost, and they both knew what bankruptcy, credit, and debt meant. Smart boys!

I love this! They’re pretty smart for their ages – sure some of the numbers were a bit off but I think the important things, they got the ideas right. I like how you led that into a conversation about them having to work hard so they can make those millions of dollars they want.

Well, I did grow up with shows like Full House, ya know? There’s always a serious heart-to-heart and an underlying lesson underneath all the silliness. Queue the sax music and someone tell Bob Saget it’s time to stop hitting on Kimmy Gibler…we’ve got some serious lecturing to attend to if my kids are going to make it in this crazy world!

Funny! I wish it all be true. It is interesting that children’s perception about money is somewhat exxagerated. I guess if you ask them how much a car costs, the would tell you about $200K. Loved this post!

I got a great chuckle out of this interview with your kids. Its amazing to see their prospect on money and the world at their ages. I love how you were so witty and on your toes about turning a simple household chore conversation 2 fold: rapid lesson on minimum wage and giving them the knowledge & understanding that if they want nicer things as adult they have to work hard in school. Kudos to you for always being ready to send a message to the kids. One day when I have kids I’d like to teach them in this manner not all preachy.

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